Sen. Wenger (right) and Lamonte Garber, Chesapeake Bay Foundation

The Senate Agriculture and Rural Affairs Committee held a hearing in York this week to hear comments on legislation to update the conservation district law and to provide tax credits for farm and conservation projects as part of the Committee’s Farmers First Agenda.

Senators Mike Waugh (R-York), Committee chair, Noah Wenger (R-Lancaster), vice-chair and Sen. Pat Vance (R-Cumberland) attended the hearing.

The Committee heard comments on Senate Bill 1286 (R-Wenger, R-Waugh, D-O’Pake) the Resource Enhancement And Protection (REAP) proposal that would establish a program to provide state tax credits worth up to $150,000 per farm to producers who install conservation practices.

“All the discussion on the REAP proposal has been very positive so far, and I think the time is right to find sustainable sources of funding for conservation practices on Pennsylvania farms,” said Sen. Waugh.

“We have a very specific, very urgent need to fill here, and if we don’t find innovative ways to meet these needs then it will fall to the taxpayers to do it,” said Sen. Wenger. “Senate Bill 1286 is one of the innovative ways we can fill this need.”

“The (Chesapeake Bay) Foundation believes that this proposal, which would provide transferable tax credits to producers across the state to install Best Management Practices, represents a bold, first-in-the-nation step toward expanding conservation opportunities and distinguishing Pennsylvania as a leader in innovative approaches to farm-friendly environmental protection,” said Lamonte Garber, Chesapeake Bay Foundation.

“We believe Senate Bill 1286 has considerable merit,” said Walt Peetchatka, PennAg Industries Association. “PennAg has not taken a formal position as yet, but our general feeling is that this legislation has significant promise for agriculture and for agri-business and will be of significant help in meeting our conservation and Chesapeake Bay goals.”

“Senate Bill 1286 is a promising approach to addressing the issue of financial support for BMPs,” said Marel Raub, Chesapeake Bay Commission. “By providing financial assistance to farmers in this manner, the Commonwealth will overcome a significant hurdle in the path of accelerated BMP implementation, resulting in two major benefits—improved water quality and investment in the future of Pennsylvania agriculture.”

The Pennsylvania Association of Conservation Districts previously endorsed Senate Bill 1286 and its companion House Bill 2878 (Stern-R-Blair, Hershey-R-Chester, Daley-D-Washington) (PA Environment Digest 8/7/06)

Rendell Administration officials at the hearing shared similar views to those of Agriculture Secretary Dennis C. Wolff who said, “We agree (Senate Bill 1286) does a good job of providing financial assistance to address non-point water quality problems, but at this time we don’t support the bill because of its financial impact. This proposal should be discussed in the context of the budget next June.”

“Local Conservation Districts in Pennsylvania provide a multitude of invaluable services to our communities,” said Sen. Waugh. “They work closely with county, local, state and federal agencies to implement programs that promote stewardship and responsible use of our land, water and other natural resources.”

Some of the services the state’s 66 Conservation Districts provide are mandated by law for farmers and landowners, or are required in order to participate in other government programs.

The Committee heard comments on Senate Bill 1323 (R-Wonderling), which is supported by the Pennsylvania Association of Conservation Districts (PACD). Among other changes, the bill would increase the membership of the State Conservation Commission by adding the departments of Community and Economic Development and Conservation and Natural Resources, let the Commission waive the requirement to have farm members on a county conservation district board if volunteers cannot be found, make Philadelphia eligible to have a conservation district and other changes.

“We want to ensure the bill is on the right track with respect to making necessary and feasible changes to the Conservation District Law,” said Sen. Waugh.

Brenda Shambaugh, from PACD, Mark Kimmel, York County Conservation District, and Don McNutt, Lancaster County Conservation District presented comments on behalf of conservation districts.

Shambaugh noted the Joint Legislative Budget and Finance Committee report on districts in June of 2005 documented what districts had been saying all along—they were doing more with less.

District representative urged the Senators to provide districts with the dedicated funding they need to provide services to farmers, landowners and municipalities.

During the hearing Waugh also reflected back on the conservation-related accomplishments already realized through the Farmers First Agenda. First, Wenger and Waugh were successful in streamlining and consolidating the funding received by the State Conservation Commission for the Local Conservation Districts, the result of which is Act 110, signed by the Governor on July 7, 2006.

Through Senate Bill 1224 (Wenger-R-Lancaster, Waugh-R-York), now Act 110, a special fund will be created in the State Treasury, known as the Conservation District Fund, which will serve as a repository for funds appropriated by the state for assistance to local districts and other funds that may be available to the Commission or Districts. This fund is non-lapsing and will be administered by the State Conservation Commission.

Additionally, through the leadership of Sen. Wenger in particular, funding was secured for the Susquehanna River Basin Commission to develop and implement the agricultural consumptive water use project. This project promises to clean up and restore impaired waterways, as well as to meet the Commonwealth’s agricultural operators’ compliance requirements with the SRBC’s consumptive water use regulations, without further burdening the farmer.

“Overall, I am very proud of the success we have seen through the Farmers First Agenda, and after today’s hearing I am confident we will see continued success, especially with respect to conservation efforts across the Commonwealth,” said Sen. Waugh.

The following individuals testified at this week’s hearing:

-- Dennis Wolff, Secretary, Pennsylvania Department of Agriculture

-- Cathleen Myers, Deputy Secretary for Water Management, Pennsylvania Department of Environmental Protection

-- Karl Brown, Director, State Conservation Commission

-- Brenda Shambaugh, Government Relations/Policy Specialist, Pennsylvania Association of Conservation Districts

-- Mark Kimmel, Administrator, York County Conservation District

-- Don McNutt, Administrator, Lancaster County Conservation District

-- Walt Peechatka, Executive Vice President, PennAg Industries Association

-- Lamonte Garber, PA Senior Agricultural Consultant, Chesapeake Bay Foundation

-- Marel Raub, PA Executive Director, Chesapeake Bay Commission

NewsClips: State Considering Tax Credits to Ensure Quality of Streams

Link: Senators Waugh, Wenger Podcast on Conservation Districts

CBF on REAP – Senate Bill 1286 and House Bill 2878

9/1/2006